Please refer to Globalisation and the Indian Economy Class 10 Social Science notes and questions with solutions below. These revision notes and important examination questions have been prepared based on the latest Social Science books for Class 10. You can go through the questions and solutions below which will help you to get better marks in your examinations.
Class 10 Social Science Globalisation and the Indian Economy Notes and Questions
Globalisation and the Indian Economy
How MNC’s interlink production across counties.
MNC’s set up production unit where it is close to the market where skilled unskilled labour is available at low cost, where government policies are favourable.
They invest money called foreign investment
At times set up production jointly with local companies.
Benefits local companies by providing latest technology and additional investment.
They buy local companies and expand production.
Place orders to small producers for products like Garments, footwear sports items etc.
How foreign trade leads to integration of markets?
Foreign trade creates an opportunity for the producer to reach beyond the domestic market.
Goods can be imported to expand the choice of goods for consumers.
Producers in two countries now closely compete against each other, prices tend to become equal.
Aim :- To liberalise international trade
Started at the initiative of the developed countries Set up rules regarding international trade.
Force developing countries to remove trade barriers
Developed countries have unfairly retained trade barriers
Impact of Globalisation
For consumers:- Improved quality, lower prices, variety of choices, higher standard of living.
Job have been created.
Local companies supplying raw material to MNC’s have become prosperous.
Top Indian companies have been benefitted from increased competition.
Some Indian companies also emerged as MNC’s e.g. Tata Motor, Infosys,Ranbaxy, Asian Paints
Struggle for a fair Globalisation
Fair globalisation would create opportunities for all.
The govt. must protect the interests of all the people in the country.
Government can ensure that labour laws are properly implemented and workers get their rights.
Government can negotiate at the WTO for farier rules.
It can also align with other developing countries.
Liberalisation of foreign trade and foreign investment policy.
Starting around 1991, barriers on foreign trade and foreign investments were removed to a large extent.
It allowed foreign companies to set up factories and offices in India.
Goods could be imported and exported easily.
Key Points to Remember:
• Globalisation is a process of international integration arising from the interchange of world views, products, ideas and other aspects of a culture.
• Multinational Corporation (MNC) is an enterprise operating in several countries but Managed from one country or group that derives
a quarter of its revenue from operations outside of its home country.
• Liberalization refers to the reduction or elimination of government regulation or restrictions on private business and trade.
• Investment is the purchase of goods (such as machine, house, and other parts etc.) that are not consumed today but are used in the future to create wealth.
• Foreign Trade is basically trade between two different countries of the world. It is also known as international trade.
• World Trade Organization is the only global international organization dealing with the rules of trade between nations. The main aim of this organization is to liberalize the law of trade between the nations.
• Privatization is the transfer of a business, industry, or service from public to private ownership and control.
• Foreign Investment is when a company or individual from one nation invests in assets or ownership stakes of a company based in another nation.
• SEZ is a special economic zone of a country that is subject to unique economic regulations that differs from other areas in the same
country. These regulations tend to be conductive to foreign direct investment.
Very Short Answer Type Questions
Q. What is Globalization?
Ans. Globalization is the integration or interconnection between the countries through trade and foreign investment by multinational corporations.
Q. Give one example of Trade Barriers?
Ans. Tax on Export
Q. When did India adopt the new economic policy?
Q. Provide one example of Indian MNC’s?
Ans. Tata Motors
Q. Why does MNC’s Invest in different countries?
Ans. To earn more profits.
Q. Which sector of economy is still lagged behind even after the Globalization?
Ans. Agriculture Sector
Q. When did Ford Motors established in India?
Q. What is privatization?
Ans. Privatization means allowing the private sector to set up industries which were earlier reserved for the Public sector.
Q. A company which has ownership or control in more than one country is know as ?
Q. In which category you will put Indian Economy?
Ans. Mixed Economy
Q. Removing barriers or restrictions set by govt. is called__________.
Q. Name the Indian manufacturer with which Ford Motors entered the Indian automobile business?
Ans.Mahindra and Mahindra
Q. Which Indian company has been bought by Cargill foods and MNC?
Q. Globalisation has posed major challenges for
(a) big producers b) small producers
c) rural poor d) none of these
Q. Which of the following is an example of a trade barrier?
a) foreign investment b) delay or damage of goods
c) tax on imports d) none of these
Ans.Tax on Imports
Q. State the main motive of MNC?
Ans. To earn greater profit
LONG ANSWER TYPE QUESTIONS
Q. What do you mean by globalization? What are the effects of globalization in India?
Ans. Globalization is the integration or interconnection between the countries through trade and foreign investment.
• Greater choice and improved quality of goods at competitive price and hence raises standard df living.
• MNC’s have increased investment in India.
• Top Indian companies emerged as multinationals.
• Created new opportunities for companies providing services like IT sector.
• Collaboration with foreign companies help a lot to domestic entrepreneurs.
• Indian economy faced the problem of brain drain.
• Globalization has failed to remove unemployment and poverty.
• Cut in farm subsidies.
• Closure of small industries.
Q. What is WTO? What are the aim of WTO? What are the drawback of WTO?
Ans. WTO is World Trade Organization. It is an organization which is in favor of increasing the world trade through globalization.
The Aim of WTO:
• To liberalize International trade by allowing free trade for all.
• To promote international trade among the countries of the world in an open uniform and non-discriminatory manner.
• Removal of both the import and export restrictions.
The Drawback of WTO:
• It is dominated by developed countries.
• It is used by developed countries to support globalization in areas that are not directly to trade.
Q. What is MNC’s? How MNC’s can spread and get control over productions?
Ans. MNC’s are Multinational corporations. It is a company that owns or controls production in more than one nation. MNC’s can spread and control by:• Setting up joint production units with local companies.• To buy up local companies and expanding its production base.
• Placing orders with small producers.• By using their Brand.
Q. What is investment? How is foreign investment different from it?
Ans. The money that is spent to buy assets such as land, building, machines and other equipment is called investment.Investment made by MNC’s is called foreign investment. Every investment is made with the hope that the assets will earn profits for these companies.
Q. Why are the trade barriers imposed on the foreign trade and investment in a country?
Ans. Trade barriers are used by the government:• To increase, decrease or regulate foreign trade.• To decide what kinds of goods and how much of each, should come into the country.• To protect the producers within the country from foreign competition.
Q. Describe any five advantages to consumers due to globalization and greater competition among producers.
• There is a greater choice before consumers along with competitive price.
• Then enjoy improved quality and lower prices for several products.
• They enjoy much higher standards of living that was possible earlier.
• Strengthening of Consumers Right like — Right to Information,Right to choose, Right to Be Heard, Right to Seek Redressal has been given to consumers.
• Legal. rights of consumers have become more effective.
Q. What are the factors have stimulated the globalization process?
• Improvement in Transportation
• Development of Information Technology
Q. How the liberalization policy was gradually adopted in India?
• After Independence, the Indian government put barrier on foreign trade and foreign ‘investment.
• Initially, Indian Industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
• In 1991, the government decided that the time has come for Indian producers to compete the producers around the globe.
Q. What is liberalization? Describe any five effects of liberalization on the Indian Economy.
Ans. Removing barriers or restrictions set by the government is known as liberalization.
• Competition would improve the performance of producers within the country.
• Barriers on foreign trade and foreign investment were removed to large extent. This meant that goods could be imported and exported easily.
• Foreign companies could set up factories and offices to boost up production. It allows making decision freely.
• The competition would improve the performance of producers within the country since they have to improve their quality.
Q. How information technology is encouraging the Globalisation ? Explain
• With Improvement in transportation technique now It become easier to send good at distance place at lower cost.
• Sending and receiving information are now become easier.
• There is rapidly increase in trade with the help of information and Technology.
Q. Explain how globalisation can be made fairer?
Q. Explain with examples how top Indian companies have benefitted from globalisation.
a) Several of the top Indian companies have been able to benefit from the increased competition
b) They have invested in newer technology and production methods and raised their production standards.
c) Gained from successful collaborations with foreign companies.
d) Some large Indian companies emerged as multinationals themselves.
e) Created new opportunities for companies providing services particularly those involving IT.
Q. “Foreign trade integrates the markets in different countries”. Support the statement with argument.
Ans. From notes.
Q. “A wide ranging choice of goods are available in the Indian markets”. Support the statement with examples in context of globalisation
Ans. A wide ranging choice of goods are available in the Indian market.
a) The latest model digital cameras, mobile phones and television made by the leading manufactures of the world are within our each.
b) Every season, new models of automobiles can be seen on Indian roads.
c) A similar explosion of brands can be seen for many other goods.
Q. Explain the steps taken by government to attract foreign investment.
Ans. Government can take following steps to attract foreign investment:
a) Industrial zones called SEZ (Special economic zones) are being set up to provide world class facilities-electricity, water, roads, transport, storage etc.
b) Govt. has also allowed flexibility in the labour laws to attract foreign investment.
c) Instead of hiring workers on a regular basis companies can hire workers ‘flexibly’ for short provide when there is intense pressure of work.
d) Exemption from paying tax in early 5 years
Q. “Not every state of India has benefitted from globalisation”. Examine the statement.
Ans. Do it yourself from the notes.